The new product which will be primarily targeted at buy-to-let investors and other high net worth clients does not require monthly payments of the principal sum borrowed or interest.

Sean Oldfield (pictured) CEO at Castle Trust Capital, said: “We are in the business of complementing the products other lenders offer rather than competing with them head on. Flexible Zero, in common with our equity loan products, can sit in a second-charge position and help customers to release capital without disturbing what is often a very satisfactory existing mortgage arrangement.”

The launch of the new Flexible Zero Mortgage comes as the company announced the withdrawal of its ill-fated Partnership Mortgage.

Oldfield explained: “We designed the Partnership Mortgage when first-time buyers were in desperate need of innovative new solutions to address the shortage of available mortgage funding caused by the global financial crisis.

“Since then Government intervention has radically improved the prospects for new purchasers and our product simply isn’t selling in sufficient volume to make its continuation worthwhile. Today, the customers who are driving our rapid growth are high net worth individuals and buy to let investors who value the fact that our products can dramatically improve capital efficiency.”